• USD/CAD gained slightly on Thursday as safe-haven demand for the greenback offset domestic data that showed a sharp narrowing in Canada's current account deficit..
• Canada’s current account deficit narrowed sharply to C$710 million ($519.12 million) in the fourth quarter from a downwardly revised C$5.27 billion shortfall in the previous quarter, driven by a smaller goods trade deficit.
• Data from Statistics Canada also showed foreign investors purchased a record C$33.6 billion worth of federal government bonds during the period..
•Looking ahead, investors await fourth-quarter GDP, due on Friday, which would match the Bank of Canada's projection in January when it left the benchmark interest rate on hold at 2.25%. The central bank has cut rates by 2.75 percentage points since June 2024.
•Meanwhile, The price of oil , one of Canada's major exports, edged 0.2% lower to $65.28 a barrel as investors awaited the outcome of a third round of talks between the United States and Iran
• Immediate resistance is located at 1.3743(Higher BB), any close above will push the pair towards 1.3758(50%fib).
• Support is seen at 1.3634 (SMA 20) and break below could take the pair towards 1.3635(38.2%fib).
Recommendation: Good to buy around 1.3670, with stop loss of 1.3600 and target price of 1.3750
